High US Tariffs on China Open $105 Bn Export Opportunity for Indian MSMEs
16 April 2025 12:57 PM IST16 April 2025 12:57 PM IST
The 145 per cent tariffs of Chinese goods open up a market for Indian MSMEs which face just 10 per cent tariffs
India can also scale up exports of iron or steel nails, tacks, and pins imported by the US for $1.113 billion. (Representational image: File)
Chennai: Small and medium-sized manufacturers of products, including plasticware, locks, fireworks, hand tools, and electric gadgets stand a chance to grab a sizable portion of China’s imports valued $105 billion to the US.
The 145 per cent tariffs of Chinese goods open up a market for Indian MSMEs which face just 10 per cent tariffs. In 2024, the US imported over $148 billion worth of such products, with China alone supplying $105.9 billion—nearly 72 per cent and India just $4.3 billion or 2.9 per cent.
The US imports $581 million worth of fireworks annually, with China accounting for 96.7 per cent and Indian importing $0.24 million goods. With current US prices ranging from $15 to $60, the new tariffs would raise retail prices to between $33.75 and $135 for China. This creates a significant opening for India's Sivakasi cluster in Tamil Nadu.
Plastic tableware and kitchenware imports to the US is $4.97 billion, 80 per cent of which comes from China. India’s share is only 0.49 per cent, or $171.65 million and clusters in Dadra & Nagar Haveli, Daman, and Gujarat stand to gain. Haryana’s Bahadurgarh and Maharashtra’s Nashik and Bhiwandi have the production capability for plastic household and sanitary products.
The US imports $1.196 billion worth of locks each year - 66.3 per cent from China and 2.57 per cent from India. Aligarh in Uttar Pradesh can scale up production.
Hand tools like pliers and spanners are part of a $1.138 billion US market. China holds a 52.9 per cent share while India has 17.7 per cent share, exporting $202 million worth goods, mostly from Jalandhar and Ludhiana.
India can also scale up exports of iron or steel nails, tacks, and pins imported by the US for $1.113 billion. India has 2.7 per cent share and capacities in Howrah, Ludhiana and Pune.
Similarly, electrical gadgets like hair dryers, water heaters, fans, air heaters, vacuum cleaners and electric shavers are potential categories for Indian producers.
“India’s small-scale industrial ecosystem needs to develop depth, scale, and capability to seize this opportunity enhancing RoDTEP and duty drawback schemes, modernising the clusters for the US quality standards, providing interest equalisation scheme for small firms and launching online facilitation cell to guide MSMEs on regulatory procedures and certifications,” said Ajay Srivastava, founder, GTRI.
The 145 per cent tariffs of Chinese goods open up a market for Indian MSMEs which face just 10 per cent tariffs. In 2024, the US imported over $148 billion worth of such products, with China alone supplying $105.9 billion—nearly 72 per cent and India just $4.3 billion or 2.9 per cent.
The US imports $581 million worth of fireworks annually, with China accounting for 96.7 per cent and Indian importing $0.24 million goods. With current US prices ranging from $15 to $60, the new tariffs would raise retail prices to between $33.75 and $135 for China. This creates a significant opening for India's Sivakasi cluster in Tamil Nadu.
Plastic tableware and kitchenware imports to the US is $4.97 billion, 80 per cent of which comes from China. India’s share is only 0.49 per cent, or $171.65 million and clusters in Dadra & Nagar Haveli, Daman, and Gujarat stand to gain. Haryana’s Bahadurgarh and Maharashtra’s Nashik and Bhiwandi have the production capability for plastic household and sanitary products.
The US imports $1.196 billion worth of locks each year - 66.3 per cent from China and 2.57 per cent from India. Aligarh in Uttar Pradesh can scale up production.
Hand tools like pliers and spanners are part of a $1.138 billion US market. China holds a 52.9 per cent share while India has 17.7 per cent share, exporting $202 million worth goods, mostly from Jalandhar and Ludhiana.
India can also scale up exports of iron or steel nails, tacks, and pins imported by the US for $1.113 billion. India has 2.7 per cent share and capacities in Howrah, Ludhiana and Pune.
Similarly, electrical gadgets like hair dryers, water heaters, fans, air heaters, vacuum cleaners and electric shavers are potential categories for Indian producers.
“India’s small-scale industrial ecosystem needs to develop depth, scale, and capability to seize this opportunity enhancing RoDTEP and duty drawback schemes, modernising the clusters for the US quality standards, providing interest equalisation scheme for small firms and launching online facilitation cell to guide MSMEs on regulatory procedures and certifications,” said Ajay Srivastava, founder, GTRI.
( Source : Deccan Chronicle )
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